Buying the next house first and then short sale the current one? Isn't that mortgage fraud?

I have heard lawyers advising their clients in bankruptcy to do the same

Strategic default has become commonplace, with sellers first buying a new home before letting their old home go into foreclosure.  Never heard of that in a short sale situation.  It makes no sense because a short sale wouldn't be approved if everything was on the up and up...

Pacita... doesn't sound like it's on the up and up to me.  Someone is not doing the right thing! And, since many consumers are checking out information online, when they read something like this - they feel like it is correct information - which just dilutes their moral compass.  Wish it wasn't so.

This is going to be a topic for the next year for sure. How they trace back title, NOTE and Mortgage transfers. Legislation will soon follow I'm sure.

Pacita, Classic. The agents are shooting themselves in the foot by posting their ignorance on the Internet. Unfortunately, I am seeing more and more people wanting to strategically create a hardship, default, and then short sale.

Pacita - I am seeing more and more unethical behavior by homeowners regarding this exact topic.  Furthermore, I couldn't believe that one short sale specialist advising the homeowner to engage in unethical conduct.  Despicable!

I have seen this when it seemed justified.  The homeowner had to move to a single story, because of medical reasons.  They bought a single story, but couldn't sell their home for anything near what they paid for it because of market conditions.  The short sale of the two story was approved due to medical hardship, and the property closed.

But you are correct, a lot of people just abuse the system.

Hmmm....short sale should be based on a financial hardship....can't see how this would work...certainly would only be more contribution to a country with a housing crisis.

Bi Patricia, There is a Bail and buy programme with Wells Fargo bank. You should check that out. So if you cannot  afford a Mortgage for $700K home you may afford a $300K home. You may like to check into this programme if its there then it should be legal.